Temporal: Continuous Yield Curves for Real-World DeFi

Abstract

Temporal is a novel liquidity protocol introducing market-determined, continuous yield and forward curves for digital assets. Addressing the inefficiencies prevalent in the current DeFi landscape, Temporal offers a solution that enables credit markets to reflect underlying economic conditions, brings economic efficiency of markets to their theoretical limit, and introduces customized maturities. The protocol's AMM mechanism (patent-pending) allows for fixed-rate credit markets at custom durations, creating real-time continuous yield curves. This paper presents the technical underpinnings of Temporal's AMM, including its interest rate determination mechanism, liquidity provision strategies, and the practical applications in yield trading and on-chain bond dealing. Temporal bridges a significant gap in DeFi’s infrastructure.